Uber loses in China sells its service to Didi ChuXing: report – CNET in Spanish

Uber sells its service in China to Didi ChuXing and stays with a stake in the company.

Uber

Uber leaves the race to compete in the business drivers demand in China.

according to a Bloomberg report, the company has decided to sell its local operation to the company Didi ChuXing after having had a great battle to seize the market and just days after the country’s government asked support for these companies representing a respite for the economy of the future.

According to Bloomberg, who had access to a letter from the CEO of Uber, Travis Kalanick, before being officially published, the company has decided leave the country before the strong competition and a difficult market.

“As an entrepreneur, I have learned that success is about listening to your head and then follow your heart,” Kalanick wrote. “I have no doubt that Uber China and Didi ChuXing will be stronger together.”

The source says Uber Technologies will receive 5.89 percent of the merged company, while other shareholders of the company in China Baidu will gain 2.3 percent. The valuation of the two companies together is US $ 35.000 billion, experts said Bloomberg.

Didi ChuXing is the result of the merger of two radio companies local taxi, Didi and Kuadi, who they joined last year, giving up a strong company supported by local technology companies: Alibaba Group and Tencent Holdings, owner of WeChat and more recently Candy Crush Saga . Apple made this year an investment of US $ 1.000 billion in Didi, which at the time was a strange decision to bet on the local market.

Both Uber as Didi have been investing to take advertising and become more powerful. The San Francisco company has actually lost US $ 2.000 billion in operating in China.

“Uber and Didi ChuXing are investing billions of dollars in China, and both companies have yet to get a gain there, Kalanick wrote in the letter quoted by Bloomberg. “Reaching profitability is the only way to build a sustainable business that can best Chinese serve, drivers and cities in the long term.”

the acquisition of Uber can complicate the global expansion of Didi, especially if we consider advancing agreements to work in the US with Lyft, with local company Wave in India or Southeast Asia Grab all direct competition with the company in San Francisco.

According to the CEO of Uber the company recently reached 2,000 million trips worldwide. While it took five years to reach 1,000 million, a new record just they have achieved in six months.